Packages Ltd to develop real estate project in Lahore

[Salman]

Packages Ltd to develop real estate project in Lahore

KARACHI: The Board of Directors of Packages Limited has resolved to develop a real estate project through its subsidiary, Packages Construction (Pvt) Ltd.

“The Board has resolved to develop a real estate project in Lahore, subject to all corporate and customary regulatory approvals. The management expects that the proposed investment would be beneficial for shareholders as it leads to development of a new asset class for the company,” Adil J. Cawasji, Company Secretary of Packages Limited said.

Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden - who later founded Tetra Pak – Packages Limited provides packaging solutions to individuals and businesses.

The country has embarked upon a real estate and construction boom with a large number of mega-projects attracting huge quantum of investment.

Pakistan suffers from a housing crisis and needs about seven million additional housing units, according to data presented at the World Bank Regional Conference on Housing last year.

The country’s real estate sector continues to be dominated by two major issues of a chronic shortage of housing against a backdrop of rapid urbanisation and rising population and the impact of security factors on the risk appetite of investors and developers.

The first of these factors remains as intractable as ever, with the most recent estimates identifying a shortfall of 7.9 million houses. Other estimates paint a similar picture with the Punjab province, with a population of 82 million, said to be facing a shortage of five million houses.

By some accounts, nationally there is an incremental demand for 700,000 units a year against the annual construction of just 150,000 units.

Packages Limited posted a net profit of Rs1.039 billion for the quarter ending March 31, 2014 against profits of Rs654 million in the corresponding quarter last year.